It is possible for business owners to draft their own simple contracts, but caution is advised. While there’s no legal rule that a contract must be written by a solicitor to be valid, the quality and clarity of the drafting matter enormously. Here are some considerations:
- Understanding Legal Terms: Contracts often contain specific legal language (like “indemnity,” “warranty,” “time is of the essence,” etc.) and certain standard clauses (such as termination rights, confidentiality, dispute resolution mechanisms). If you draft an agreement without understanding these, you might omit important protections or accidentally include something that has unintended consequences. Poorly drafted clauses could be ambiguous or unenforceable, which might lead to disputes or leave your business exposed. In short, what you don’t know can hurt you. Small mistakes in wording can drastically change the meaning of a clause.
- Compliance with Law: Certain contracts need to comply with specific laws or regulations. For example, if you’re drafting an employment contract, it must at minimum meet UK employment law standards (like not contracting out of the statutory minimum notice period or holiday entitlement). If you’re drafting terms for consumers, you must ensure they’re fair under the Consumer Rights Act and that you provide required cancellation rights where applicable. A non-lawyer may not be aware of all these legal requirements. A solicitor or a professionally prepared template will incorporate these compliance points so you don’t inadvertently breach the law.
- Efficiency and Expertise: Writing a contract from scratch is time-consuming, especially if you’re not experienced. Solicitors who specialize in business contracts know the common issues and can draft documents efficiently. Similarly, using a high-quality template that’s been created or reviewed by legal experts can save time while covering all essential points. For many startups, a hybrid approach works well: use a reputable solicitor-drafted template and then customize it for your needs. This way you benefit from legal expertise without the cost of a fully bespoke draft each time.
- Enforceability and Peace of Mind: Perhaps the biggest reason to seek professional input is to ensure the contract will hold up if challenged. If a dispute arises, a well-drafted contract will make it easier to enforce your rights. By contrast, a DIY contract might contain unclear or contradictory terms that a clever opposing lawyer can exploit. Investing in a proper contract up front can prevent far more expensive conflicts down the line. It also sends a signal to the other party that you’re serious and prepared – you’re less likely to be taken advantage of if the contract clearly protects your interests.
For many small businesses, the ideal solution is to use services such as those offered by British Contracts. We provide contact reviews and advice at highly competitive fixed fees. Of course, for complex or high-value deals, or whenever you feel out of your depth, consulting a solicitor directly is wise. British Contracts offer fixed-fee solicitor contract reviews and drafting services so that you can manage the cost. In summary, while you can write your own contracts, using professional expertise will give you stronger, more reliable agreements – a worthwhile investment in your business’s security.